7 Best REITs to Buy for a Recession

Continuing on this weekend's theme of investing in a difficult market, here are more hot tips from U.S. News Invested, this time for beating recession by buying real estate investment trusts.  The searing hot weekend is over, nicer temps coming.  

JULY 21, 2022 Invested Advice, rankings and stock market news for investors.

Good morning, investors. The Nasdaq's hot streak continues, and Netflix shows it's still a stock to watch. Highlights of today's newsletter include our market insights plus these new articles: 7 Best REITs to Buy for a Recession 7 Tips to Stay Calm During a Stock Market Crash 8 Companies That Could Issue the Next Stock Splits 5 Top Crypto Scams to Watch in 2022 TODAY'S FEATURED STORY 7 Best REITs to Buy for a Recession Recessionary fears are currently running high in the U.S. June's year-over-year consumer price index readings came in blisteringly hot at 9.1%, surpassing Wall Street consensus estimates of 8.8%. The yield curve inversion between the two-year Treasury bond and the 10-year steepened. An inverted yield curve is often interpreted by economists as a sign of an impending recession. All eyes are now on upcoming gross domestic product data. With this in mind, investors looking for real assets that may outperform stocks and bonds can buy shares of real estate investment trusts, or REITs. REITs often pay high distribution yields, which can cushion portfolios in a sideways or bear market. Here are seven REITs to buy in case of a recession: Annaly Capital Management Inc. (ticker: NLY). With a trailing-12-month (TTM) price-earnings, or P/E, ratio of just 3.6, NLY is a REIT that looks to be trading in value territory. In comparison, the popular Vanguard Real Estate ETF (VNQ), a market-cap-weighted index of 170 U.S. REITs has an average P/E ratio of 27.5. Most of NLY's book of business is centered around its agency segment, which primarily deals in mortgage-backed securities. NLY is expected to report earnings after market close on July 27 for the quarter ended June 20. The consensus earnings-per-share estimate is for 97 cents and the revenue estimate is $1.53 billion. What's notable right now is NLY's distribution payout of 88 cents a share annually. Dividend yield (TTM): 13.9%. New Residential Investment Corp. (NRZ). NRZ is another REIT that looks to be trading in value territory with a trailing P/E ratio of 4.45. Like NLY, NRZ primarily deals in mortgage-related assets, with segments operating in origination, servicing, residential securities, properties and loans, consumer loans, and mortgage loans receivables. Recently, NRZ said it would be operating as an internally managed REIT, which management estimated would produce $60 million to $65 million in cost savings annually. Along with this change comes a rebranding of the company's name to Rithm Capital, and a new ticker: RITM. The change is slated to occur on or about Aug. 1. NRZ last paid an annualized distribution of $1 per share. Dividend yield (TTM): 10%. Click here to continue reading. 7 best REITs to buy for a recession: Annaly Capital Management Inc. (NLY) New Residential Investment Corp. (NRZ) Sun Communities Inc. (SUI) American Tower Corp. (AMT) Boston Properties Inc. (BXP) Prologis Inc. (PLD) Ventas Inc. (VTR)